Saudi Arabia ICT Market Size

Saudi Arabia ICT Market Analysis

The Saudi Arabia ICT Market size is estimated at USD 50.60 billion in 2024, and is expected to reach USD 76.05 billion by 2029, growing at a CAGR of 8.49% during the forecast period (2024-2029).

• Fast internet, wireless connections, and cloud computing are transforming several businesses. BFSI, pharmacy, healthcare, retail, and education are among the businesses undergoing significant change due to the increasing relevance of smart gadgets and the internet during a pandemic. With the introduction of Industry 4.0 in the manufacturing sector, numerous factories are embracing digital technology to improve, automate, and upgrade the whole process. Industry 4.0 technology, such as robotization, is already commonplace in many enterprises.
• According to the Communications and Information Technology Commission (CITC) of Saudi Arabia, by 2026, roughly 97.6% of people should be online as the government solicits additional funding for broadband networks. Mobile internet speed has improved to 105.42 Mbps, owing to the liberalization of more than 1100 GHz spectrum and its availability to operators. Saudi Arabia is now ranked sixth internationally and second among the G20 nations, outpacing the global average by about 250%.
• Saudi Arabia is striving to stay ahead of the curve. In June 2022, Saudi Arabia adopted a new Information and Communications Technology (ICT) law covering telecommunications and information technology (IT) sectors, including digital infrastructure, new technologies, e-government, and enabling apps and services.
• Cloud-related skills are among enterprises' widely requested skills for the digital transition, followed by statistical analysis, data mining, middleware, and integration software. Due to the low availability of digitally skilled ICT workers, companies increasingly rely on experts who combine digital, organizational, process and change management skills. The high dependence on external sources to balance the skill deficits exposes the risk of data theft in the country. The expanding use of cloud services and IoT devices introduces new vulnerabilities that demand expertise in digital and ICT security technologies posing a challenge to the market studied.
• In the post-COVID-19 scenario, several developments contribute to the market’s growth. IoT technology is analyzed to contribute to the market growth, owing to its rising adoption across end-user industries. Smart city initiatives are being pursued in Saudi Arabia to enhance urban infrastructure and living standards. For instance, the futuristic metropolis of NEOM, built in northwest Saudi Arabia, seeks to serve as a center for innovation and sustainability. It uses IoT technologies for transportation, healthcare, and energy management.